Reynolds and Reynolds
Dealer News
Volume 1 | 2011
All Articles Fixed Operations Variable Operations     Tell us what you think: fuel@reyrey.com
Dealer to Dealer
How Utilization Jump-started Our Business
System Tips You Can Use
Track Service Exceptions Daily to Protect Your Bottom Line
Service Pricing: Increase Profit With Variable Labor Rates
News and Best Practices
Best Practices for Keeping Employees Satisfied
The Gold Mine in Quick Service
SEO Enhancements Take You to the Top
New Mobile Enhancement Available for All
System Tips You Can Use
Service Pricing: Increase Profit With Variable Labor Rates
Want a unique pricing tool that will allow you to grow your top line and manage your bottom line - at the same time? Variable Labor Rates is just the tool you need. If you aren't using this cost-saving feature, give it a try and watch your effective labor rate rise.

Variable Labor Rates gives you the ability to change what you pay your technicians or charge the customer for different kinds of jobs. The rate goes up or down based on the specific operation being performed. For example, you can:
  • Charge lower rates on basic services like oil changes. Then, even when your master technicians do an oil change as a part of a bigger ticket, they will get paid the appropriate rate.
  • Charge higher rates for captive services. Try this for major engine work, hybrid or electric vehicles, or anything that requires a master mechanic.
  • Pay your techs higher rates on upsold items. This will encourage them to be diligent about completing the multiple-point inspection or vehicle report card process and finding additional required services.
Here are some things to try in the ERA setup screens:
  • Set up variable rates in either "Department File Maintenance" (3622) or "Make Billing Guide" (3624).
  • Change the rate for different technicians in "Technicians / Advisors" (3073).
  • Adjust what rates are charged with specific operation codes in "Service Operations" (3625).
  • Apply variable rates as an override for a specific job by entering a "?" at the labor rate prompt in the "Labor Detail" screen of "R/O Close Out" (3651).
  • Change the technician rate without changing the customer rate with a "?" when you enter a technician rate override.

Once set up, it's easy to make minor changes to your variable labor rates to fit them to your market and employees.

For more information on ERA's Variable Labor Rates tool, got to my.reyrey.com and search for "Variable Labor Rates" or call the Technical Assistance Center at 800.767.0080.

For more system tips, visit the Tips Archive.




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